The NCUA on Friday posted a three-part August economic update video on its YouTube channel, featuring Chief Economist John Worth discussing the economy, the Financial Stability Oversight Committee’s 2012 annual report, and corporate assessments.
In the opening segment, Worth covers labor market developments, housing market improvements, consumer confidence and potential risks to the economy. In the second segment, the economist calls the FSOC’s annual report an “excellent resource for anyone interested in financial markets and institutions,” and highlights two key FSOC recommendations of particular interest to credit unions – the need for improved emergency liquidity planning and access, and how changes in interest rates can affect risk profiles.
The topics are of interest to credit unions, Worth said, because they are related to the NCUA’s recently proposed rule on emergency liquidity for federally insured credit unions in anticipation of the wind down of U.S. Central Bridge and a new rule on interest rate risk which becomes effective in late September.
The final segment features an analysis of how anticipated future Stabilization Fund assessments for credit unions compare favorably to anticipated Deposit Insurance Fund assessments by the FDIC.
